(Recorded on 09/27/22) Topics covered on this video coaching call In this new video broadcast, trading coach Jerry Robinson provides a high-level view of the 2022 stock market crash and shares his signature commentary. Later, an update on the soaring U.S. dollar along...
In this latest video episode, precious metals advisor Tom Cloud shares his latest insights on the physical gold and silver markets. He also provides his latest economic and market commentary.
Hello, this is Tom Cloud with my bi-monthly Precious Metals Market Update. Let’s jump right into it.
Here we are on Wednesday morning, as I film this, and we’re seeing gold over $1860 and silver over $25. Silver is up $0.75 today and gold is up $34, and you say, “Why?”
Well, we know the CPI figures came out this morning. They’re the highest, since 1990, 31 years since we’ve seen CPI over 5% and we’re at an annualized rate now of 6.2%.
And in reality, some people say it’s gonna get worse all the way out to March; others say it could peak out. But I talk to restaurant owners, clients of mine, that are telling me they’ve seen 25% hikes this calendar year and beef is even going higher and 70% in scallops. And the price is, of course, going to get pushed on to the consumer. The consumer is always going to be the one that gets the price pushed on.
So, certainly, we’re just continuing to prove that we’re printing money at rates that have never been seen in the history of the United States of America. And this Administration wants to push it faster. They want to create a false environment, an economy that’s not real. You can print $3 trillion and make the economy look any way you want, but who’s gonna pay for the debt?
Certainly, not me. My children or my grandchildren may end up being the ones that have to pay for this horrendous inflation rate that’s not only coming, it’s already here. It’s the worst we’ve seen in 31 years, and this has been going on for months, and hopefully and prayerfully, each of you has been doing something about it, getting your money out of things that are printed that’s evidence of debt with nothing behind it that’s real.
Next question is, from you the listener, is the gold-silver rate is now 75 to 1.
Wow, it was 123 to 1 a year ago!
Now, we’ve seen silver outperforming gold. So, the ratio now is gold is 75 times more valuable than silver. It was 123 times more valuable but we’re seeing this run in silver now, as there’s more evidence we’re probably not going to have a recession.
It doesn’t mean we’re not for sure, but it’s more likely now that this Administration will print money and do anything they can to stay out of a recession, and to grow the economy with printed money, and not earned money. The way it used to be, the old-fashioned way, you earn it. You don’t print it.
And then the other thing that I’ve talked about several times on here and a great question from the listener, is, “When is all that gold the central banks are buying through the Basel III, when’s it going to kick in?” Well, it has kicked in. Go back and look at gold in June, in the $ 1400s. Now we’re up in the $1800s, $1860 this morning, and it’s going keep going up
Yes, there’ll be volatility. It’s not gonna go straight up. There are times that not just the people that are used to creating money or more ownership in gold by using the futures market and run it up and down, and when it goes down, it’s not real. They purchase silver and gold at below the real market. So, yes, central banks are buying at record rates. They’re gonna continue to buy. They don’t want to be holding debt, especially U.S. debt. And I’ll get to that on the next question. But what we’re looking at now is a gold-silver ratio that could go to 60 or 65. If you saw silver get up to, let’s say 30, then it’s 60 times out. That’s where gold is now. So it’s come down a little bit, but anyway, I’m telling you, you want to get your gold and your silver, and you want to get it, in my opinion, between now and March. I do think the first part of the year, we’ll see a strong up move in both gold and silver.
But the other question that dovetails this: “I track the U.S dollar every day. You talk about it and others talk about it, and I read about it. And everybody says the magic number is 92.”
When the dollar hits 92 on the world index, it falls. It was down to 92.80. So that is because people now are worried about the stock market. They’re pulling money out and they’re moving it to safety, what they call safety, U.S. Treasuries, and it’s caused the dollar to go up in value rather than down. But you also see the stock market is starting to say, just in the last two or three days, resistance, slightly falling prices, with some people predicting a 10% drop between now and the end of the year.
But it’s all controlled by who owns the debt. We’ve got $29 trillion in debt that we’re borrowing to run this country. And of that $29 trillion, somewhere between $8-9 trillion belongs to the Chinese and the Japanese. All they gotta do is liquidate their 30-year bonds, their 10-year bonds, their 5-year notes, and 1-year notes. And the next thing you know is interest rates are going straight up, the economy then goes into recession, and then the stock market goes down.
Interest rates go up because you gotta pay more because of all the liquidation the Japanese and Chinese will do. It’s not if, it’s when. When do they decide they’ve had enough of us in our debt frenzy? Living way above our standards (the whole country is) and the wealthy get wealthier, middle-class is not doing so well, and all the lies of this Administration, whether you like them, love them or hate him. There’s a lot of stuff they said they would that they haven’t done that’s affected prices dramatically.
So what we’ve looked at today is:
- The CPI is at a 31-year high, annualized at 6.2%
- The gold-silver ratio is at 75 to 1, down from 123, and likely headed lower on the short-term
So, then, the dollar value we’ve looked at has gone up right now, but when it gets back down below 92 and breaks, that’s when every 1% that the dollar index goes down, gold and silver will go up 4%. We expect it to go all the way to 72 on the index before it finds a bottom after it wades through all this created money, liquidation of debt, replacement of debt, and all of that we see coming.
I still love palladium and platinum. I think you’ll see a lot higher platinum prices, we’ve seen over $300 jump, about 30% from the bottom a few months ago. And I still think you should be buying that to mix with your gold and silver mix.
So hopefully, we’ve talked about things that are important. I’m as bullish as I’ve ever been in 46 years of doing this.
And I appreciate the kind remarks and I still enjoy doing this and I plan on doing this for a long time. I just don’t work in the office as much as I used to. I spend more time out, but I’m still working. I’m still doing a lot of work with investment-grade diamonds. You probably know what’s going on with us there. And that’s growing through my tutelage and marketing with that, so it’s really exciting, but watch for that.
So, this is the most important time that I’ve been in business for wealth transfer that you’re going to see toward hard assets.
You can reach us at (800) 247-2812, and Dan Scoggins can help you, he’s been with me for 25+ years. He’s the head trader now, and he’ll help you. Everybody loves dealing with Dan. We ask you to do the same.
With this bi-monthly precious metals market update, this is Tom Cloud signing out.
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